Legal Question in Business Law in California

As long as the company / owner is not violating the Corporate or tax codes, or ERISA rules on benefit funding, he is entitled to have the company pay many things that you might consider 'personal'. However, you theoretically would have a right to demand accounting of your benefits, including accounting of corporate books to determine if illegal/improper expenditures have been made that deprive you proper contributions. That is easier said than done, and there are going to consequences to any aggressive or legal action you may take. But, if serious about pursuing this, feel free to contact me.

I pretty much agree with Mr. Nelson. Based on your facts, I assume this is a corporation and that the owner, his family and/or close friends own a controlling interest. If so, they are also able to nominate and elect a majority of the directors, maybe all of them. The board has the authority to hire and fire the corporate officers and to determine their compensation. So, right now, let's say the board has set this guy's pay at $150,000 a year and free home repairs, health care and a credit card where nobody checks what he uses it for. If the ESOP holders complain, what's to keep his buddies on the board from canceling the perks and then raising his base salary to $200,000? Or $250,000? The IRS is probably being scammed here by diversion of personal expenses to pre-tax company accounts, and it might appreciate an anonymous tip. As to the affected employees, I'd advise having a talk with an attorney who has had or will have a chance to review the Plan contract. The employees best shot is to show that the executives' total compensation is excessive in relation to the size of the company or the value of the services rendered, rather than how much of it is in the form of tax-avoiding perks rather than received as taxed salary.